Ex parte GST tax quantification cannot stand without hearing; fresh adjudication and reasoned order required

An ex parte appellate order quantifying tax liability under Section 130 of the Uttar Pradesh GST Act was unsustainable because the dispute required determination through the statutory assessment process and a proper opportunity of hearing. The HC quashed the order, treated the petitioner's non-appearance as not barring reconsideration, and directed the authority to hear the parties afresh and pass a reasoned decision on merits.

---

---

Issues: Whether the impugned ex parte order quantifying tax liability under Section 130 of the Uttar Pradesh Goods and Service Tax Act, 2017 was sustainable, and whether the matter required interference and remand for fresh hearing.

Analysis: The petition challenged an ex parte appellate order by contending that quantification of tax liability cannot be carried out under Section 130 of the Uttar Pradesh Goods and Service Tax Act, 2017 and must instead proceed under the statutory machinery for determination of tax liability. The record also indicated that the petitioner had not appeared before the authority despite opportunities, while the petitioner asserted sufficient cause for non-appearance. In these circumstances, the impugned order could not be sustained and the petitioner was entitled to an opportunity of hearing before a fresh decision on merits.

Conclusion: The ex parte order was quashed and set aside, and the authority was directed to grant an opportunity of hearing and thereafter pass a reasoned order.

Ratio Decidendi: Tax liability under the GST framework cannot be conclusively quantified through an ex parte order without affording a proper hearing, and the adjudicatory authority must adopt the statutory determination procedure and record reasons before deciding the matter.

---